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Does self-control constitute a driver of millennials’ financial behaviors and attitudes?

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  • Rey-Ares, Lucía
  • Fernández-López, Sara
  • Castro-González, Sandra
  • Rodeiro-Pazos, David

Abstract

Millennials are currently facing particular financial challenges that will condition the future financial well-being of the society as a whole, and the decision-making process happening in worse circumstances than those of preceding generations. However, few studies to date have deeply analyzed millennials’ financial behaviors, and particularly, how self-control operationalizes their financial choices. Using data from the 2017 Survey of Financial Competences of Spanish individuals, this paper analyzes how self-control influences different financial behaviors and attitudes and whether this effect differs between millennials and older generations. The results indicate that self-control does influence the individuals’ financial attitudes regardless of generation, whereas in the case of financial behaviors, only those millennials exhibiting the highest levels of self-control are affected by it when deciding on a saving account or a personal loan. These outcomes have numerous significant implications, in addition to providing recommendations to policy makers aimed at engaging millennials in healthier financial behaviors.

Suggested Citation

  • Rey-Ares, Lucía & Fernández-López, Sara & Castro-González, Sandra & Rodeiro-Pazos, David, 2021. "Does self-control constitute a driver of millennials’ financial behaviors and attitudes?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 93(C).
    • Handle: RePEc:eee:soceco:v:93:y:2021:i:c:s2214804321000422
    DOI: 10.1016/j.socec.2021.101702
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